Rajkot: The chairman of the Gujarat State Edible Oil and Edible Oil Seeds Association (GSEOEOSA) expressed fears that drought in China and poor groundnut cultivation in southern Indian states may prompt the increase in peanut oil prices in the coming season.
GSEOEOSA Chairman Samir Shah, speaking to local media here, said: “It will be too early to predict peanut oil prices at specific rates and edible oil prices in general for the next session, because many factors are going to affect the domestic market, such as drought in China, which will force it to import more peanuts from other countries, including India In the southern states, specifically in Andhra Pradesh, peanut planting in the monsoon season is only 20 percent of the total area and in Karnataka 35 percent compared to the previous year.
In Gujarat, groundnut planting in the monsoon season is done on 17 lakh hectares of land, down two lakh hectares from last year as of August 22, according to the state agriculture department.
The US Department of Agriculture’s forecast for China’s peanut production for 2020-21 was 17.7 million metric tons, which is likely to remain the same for the current year.
But, the drought in the season will negatively affect planting and harvesting. Because their import is likely to increase is Shah’s apprehension, resulting in high demand for peanuts from the domestic market and less availability for crushing. That will drive up edible oil prices and especially peanut oil prices in Gujarat and India in the coming season. On Thursday, prices for 17 liters of peanut oil touched Rs 3,000, which is historically high.